The European Union has formally approved a €90 billion loan for Ukraine and its 20th sanctions package against Russia, ending weeks of diplomatic deadlock. The agreements were finalized on Thursday after Hungary lifted its vetoes, allowing EU leaders to sign off on the measures during a summit in Cyprus.
EU Leaders Welcome Breakthrough
European Commission President Ursula von der Leyen hailed the developments as "good news" on social media, stating, "While Russia doubles down on its aggression, we are doubling down on our support to the brave Ukrainian nation." The loan, funded by EU borrowing with the expectation that Russian reparations will cover repayments, is set to provide two-thirds of Ukraine's financial needs for 2026 and 2027. Von der Leyen indicated that the first tranche of €45 billion, planned for 2026, could be disbursed by the end of June, with initial funds directed toward Ukraine's domestic drone production.
Sanctions Target Russian Banks and Evasion Networks
The 20th sanctions package blacklists Russian banks, energy companies, and entities in the United Arab Emirates, Thailand, China, and Hong Kong for aiding Moscow in evading Western restrictions. In a first, the EU also imposed an export ban on high-tech machine tools and telecoms equipment to Kyrgyzstan, accusing it of systematically failing to prevent re-exports to Russia for missile and drone production. Kyrgyzstan has previously stated its commitment to complying with Western sanctions.
Hungary's Veto Lifted After Oil Dispute Resolved
Hungary lifted its vetoes following the resolution of a dispute over a damaged oil pipeline traversing Ukraine. Russian oil deliveries to Hungary and Slovakia resumed on Thursday, as reported by Hungarian energy group MOL. Hungarian Prime Minister Viktor Orbán, who recently lost to conservative rival Péter Magyar, did not attend the summit.
Zelenskyy Joins Summit Talks
Ukrainian President Volodymyr Zelenskyy joined EU leaders in Ayia Napa for dinner discussions. He emphasized the importance of financial certainty for Ukraine, highlighting priorities such as arms production, procurement of weapons from partners, and preparing the energy sector for winter. Regarding Hungary, Zelenskyy expressed hope for strong bilateral relations and noted ongoing communication between their teams.
EU Accession and Broader Discussions
European Council President António Costa welcomed the agreements and called for opening the first cluster of negotiations for Ukraine's EU accession, a process Hungary has also blocked. EU leaders also addressed surging energy prices, the Middle East conflict, and the EU's mutual assistance clause. Cypriot President Nikos Christodoulides urged a more serious approach to Article 42.7, while Lithuanian President Gitanas Nausėda stressed the importance of NATO's Article 5. Regional leaders from Lebanon, Egypt, Syria, and Jordan are expected to join talks on Friday.
